Will the real Britain please stand up? While such august institutions as the IMF declare that the United Kingdom is one of the hardest hit by the global crisis, with the economy set to contract further and unemployment to soar to 3m in 2009, the City is celebrating record first-half gains. Today’s Independent reports that Barclay’s bank has posted pre-tax profits of £2.98bn, up 8% on 2008, while HSBC has managed to score £2.8bn out of such uncertain financial times.
On the London daily’s front page, Barclay’s head Capital Bob Diamond, who earns a mere £50m a year, promises that bonuses for staff will hit seven figures, arguing that “high-calibre graduates” would not be “interested in our industry” for less. No less than Conservative party’s George Osborne, the Shadow Chancellor, has reacted by saying "Banks should watch out that they do not misuse taxpayer support.”Meanwhile, Northern Rock, the first bank to collapse at the outset of the crisis in 2008, has posted losses of £724m. And this despite the £10.9 billion the government has invested in it.
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